Engine-derived ROI data from 5 representative Los Angeles-area properties. Methodology transparent below. CC-BY 4.0, journalists, CPAs, and researchers may cite this dataset with attribution.
Important framing: These are engine outputs for representative fixture scenarios, not predictions about any specific property. The cost segregation engine takes real property data (address, year built, square footage, renovation history, assessor records) and produces a study tailored to your actual property. The aggregate numbers shown here describe the Los Angeles market's general profile; your specific results will reflect your specific property.
Each fixture was run through the Cost Seg Smart engine, the same engine that produces real customer studies. Numbers below are reproducible from cities/losangeles.json via scripts/run_city_stats.py.
| Property | Neighborhood | Price | Basis | Land % | 5-yr | 15-yr | Reclass % | Y1 fed savings @ 37% |
|---|---|---|---|---|---|---|---|---|
| Silver Lake Bungalow Flip SFR · Built 1925 |
Silver Lake / Echo Park (Eastside) | $1,325,000 | $728,750 | 45.0% | $67,547 | $48,839 | 16.0% | $43,063 |
| Highland Park Craftsman + ADU SFR · Built 1922 |
Highland Park / Eagle Rock | $1,050,000 | $601,650 | 42.7% | $53,016 | $43,489 | 16.0% | $35,707 |
| Mid-City Duplex Investor DUPLEX · Built 1928 |
Mid-City / Mid-Wilshire | $1,485,000 | $825,808 | 44.4% | $88,182 | $58,349 | 17.7% | $54,216 |
| Sherman Oaks SFR + Detached ADU SFR · Built 1968 |
Sherman Oaks / Valley Glen (San Fernando Valley) | $1,850,000 | $1,133,865 | 38.7% | $104,722 | $79,709 | 16.3% | $68,239 |
| South LA Fourplex FOURPLEX · Built 1947 |
South LA / Leimert Park | $985,000 | $569,921 | 42.1% | $67,136 | $37,865 | 18.4% | $38,850 |
| Engine property type | Fixtures | Median reclass % | Min | Max |
|---|---|---|---|---|
| SFR | 3 | 16.0% | 16.0% | 16.3% |
| DUPLEX | 1 | 17.7% | 17.7% | 17.7% |
| FOURPLEX | 1 | 18.4% | 18.4% | 18.4% |
"STR" denotes residential property operating as a short-term rental, the engine applies an FF&E density uplift not captured in the LTR (long-term rental) treatment.
| Neighborhood | Typical value | Typical land allocation | Profile note |
|---|---|---|---|
| Silver Lake / Echo Park (Eastside) | $1,325,000 | ~38% | 1920s–1940s SFR and bungalow stock heavily renovated. High land allocation (eastside land scarcity premium). Fix-and-flip dominant; some STR-loophole-eligible properties where owner-occupies primary residence. |
| Highland Park / Eagle Rock | $1,050,000 | ~34% | Northeast LA — 1920s craftsman bungalow stock with heavy renovation cost-segregation potential. Slightly lower land allocation than Silver Lake. ADU rush since 2017 ADU law. Mix of fix-and-flip and small MF. |
| Mid-City / Mid-Wilshire | $1,450,000 | ~32% | Pre-war duplex and small MF dominant. The cost-seg study really works here on 2-4 unit acquisitions — multiple units mean multiple FF&E packages and shared-system depreciation. Active small-MF investor market. |
| Sherman Oaks / Valley Glen (San Fernando Valley) | $1,850,000 | ~30% | 1950s–1970s SFR with substantial post-2010 renovation activity. ADU developments common. Larger lot sizes mean ADU yields are meaningful additions to depreciable basis. |
| South LA / Leimert Park | $685,000 | ~24% | Lower entry pricing, 1920s bungalow and small MF stock. Strong fix-and-flip activity. Lower land allocation than Westside / Eastside. Cost-seg works particularly well on 2-4 unit acquisitions in this price band. |
The "typical land allocation" column reflects baseline patterns for each sub-market based on county assessor records and statistical modeling. For specific properties where reconstruction cost (RSMeans 2024 component build-up adjusted for time and geography) exceeds 2.0× the implied depreciable basis after subtracting the baseline land, the engine applies a premium land floor (~50%) to keep the study within audit-defensible territory. This typically affects ultra-premium resort inventory (ski-in/ski-out, beachfront, view-premium properties), where land scarcity premium dominates the purchase price. The per-fixture table above shows the actual land_source used by the engine for each fixture, values of statistical_premium_floor indicate the premium-floor mechanism was applied.
The takeaway: typical neighborhood allocations describe the market baseline. Individual property results depend on specific reconstruction-cost-vs-purchase-price ratios, and ultra-premium product may show higher land allocation in the engine output than the neighborhood typical.
California decouples from federal §168(k). The 100% federal bonus depreciation restored by OBBBA in 2025 produces real federal-tax savings, but California requires the deduction to be added back on Schedule CA (540) and the basis depreciated on the regular MACRS schedule for state purposes. For Los Angeles owners in California's top 13.3% bracket, the headline federal-savings number overstates total tax savings — the state-side California acceleration that would have occurred under federal conformity is recovered slowly over the regular 27.5- or 39-year schedule instead.
Decoupling: California's decoupling is permanent and structural. Federal §168(k) at 100% reduces federal liability; California treats the property under the regular MACRS schedule. For LA cost-seg buyers in the top California bracket, model federal-only savings as your Year-1 win.
State income tax structure: Progressive — California's top bracket is the highest state-level individual rate in the United States
Verify with your CPA. State tax conformity for federal §168(k) is adjusted frequently. Framing reflects our understanding as of May 2026, verify current-year treatment with a qualified tax professional.
Every figure on this page is reproducible. The pipeline:
cities/losangeles.json under the engine_fixtures array, each with address, property type, purchase price, year built, square footage, and STR/LTR flag.scripts/run_city_stats.py instantiates a PropertyInput for each fixture and calls engine.run_study(), the same path that produces a real customer study.For full methodology details including QC validation, reconciliation logic, and audit-defense documentation, see costsegsmart.com/methodology.
This dataset is licensed under the Creative Commons Attribution 4.0 International License. You may republish, remix, or extend this data for any purpose with attribution. Suggested citation format:
Cost Seg Smart Research Team. (2026). "Los Angeles, CA Cost Segregation Benchmarks 2026." Cost Seg Smart. 5 representative fixtures. Retrieved from https://losangelescostseg.com/data/losangeles-cost-seg-stats/
For interview requests, additional data slices, or related questions: [email protected].